Labour analysis has revealed that the average household in Denton and Reddish is set to be put under more pressure than ever by Conservative mismanagement of the economy.
In Denton and Reddish, it is estimated that 9,300 home owners will see a rise of around £2100 on their annual mortgage increase.
It follows the news that many mortgage deals are being withdrawn by Banks and interest rates increased, with Moneyfacts data suggesting the typical rate on a two-year fixed-rate loan had increased to almost 6%.
This week, economists warned that there is a real risk of job losses and a sharp recession. The latest forecasts of economic growth this year suggest that the UK is struggling to get out of the slow lane, with growth of just 0.2% forecast on the year.
Chancellor Jeremy Hunt last week agreed measures with banks aimed at cooling the mortgage crisis, including giving people struggling with repayments a 12-month grace period before repossessions begin. However, Labour has been urging ministers to compel banks to be more supportive – claiming around two million households could miss out on the mortgage support they need due to the voluntary nature of the Government’s current support scheme.
Commenting, MP for Denton and Reddish Andrew Gwynne said:
“The Tory mortgage penalty is devastating for family finances right across Denton and Reddish and is holding back our economy.
“Local people are asking themselves ‘am I better off after 13 years of Tory Government?’ and answering with a resounding ‘no’.
“We need to see the Government forcing banks to help mortgage-owners, and bring financial and economic security back. Families are living on a perpetual financial cliff-edge, and we need to see action.”